12:57 PM EST, 12/05/2024 (MT Newswires) -- American Airlines Group's ( AAL ) stock soared intraday Thursday as the carrier upgraded its fourth-quarter revenue estimates and announced that Citigroup ( C ) will become the airline's exclusive credit card issuer in the US.

American Airlines ( AAL ) is guiding total revenue per available seat mile growth to be flat to up 1% year over year in the December quarter, compared with its previous guidance that TRASM would be down 1% to 3%. Shares of American Airlines ( AAL ) jumped 16% in midday trade.

It now sees adjusted earnings per share between $0.55 and $0.75, up from a prior range of $0.25 to $0.50.

"The pricing and revenue environment has continued to improve" since management issued its prior fourth-quarter guidance late in October, the company said in a Securities and Exchange Commission filing.

Cost per available seat mile is projected to rise 5% to 6% in the final quarter of 2024, compared with 4% to 6% previously expected, due to higher accrual for profit sharing on expected stronger earnings.

The company announced Thursday that it has extended its partnership with Citigroup ( C ), ending its arrangement with Barclays ( JJCTF ) . Cardmembers will begin transitioning to Citi in 2026.

American Airlines ( AAL ) expects cash remuneration from its co-branded credit card and other partners to grow by roughly 10% annually, according to its securities filing. Cash remuneration for its co-branded credit card business was about $5.6 billion for the 12 months ended Sept. 30.

Separately, Southwest Airlines ( LUV ) said Thursday that it increased its fourth-quarter unit revenue growth forecast to a range of 5.5% to 7% from the previous outlook of 3.5% to 5.5%. It is benefiting from better-than-expected leisure travel demand and revenue optimization efforts.

"The company is encouraged by recent revenue trends and forward bookings, including fourth quarter holiday travel, and currently expects strong revenue trends and tactical initiative performance to carry into 2025," Southwest ( LUV ) said.

Price: 17.40, Change: +2.52, Percent Change: +16.94